Canada backtracks on policy vs coal
The country is grappling with the high cost of renewable energy (RE) and the slow pace of its development, prompting energy companies to delay their shift away from coal.
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The country is grappling with the high cost of renewable energy (RE) and the slow pace of its development, prompting energy companies to delay their shift away from coal.
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Canada has become the latest developed nations to backpedal on rigid policies on the use of coal as fuel to generate electricity, joining the likes of Germany, United Kingdom, Netherlands, Poland, Japan and South Korea.
Critics have accused Canadian Prime Minister Mark Carney of betraying the fight against climate change.
Yet, several high-income countries (as classified by the World Bank, with GNI per capita above $13,845 in 2024) have faced energy security challenges, including high natural gas prices and supply disruptions from geopolitical events like Russia’s invasion of Ukraine.
This has prompted temporary or partial reversals in coal phase-out commitments, with policies extended to maintain electricity supply.
International pressure on developing nations like the Philippines to accelerate transition to renewable energy (RE) remains strong, with funding tied to coal reductions.
The Philippines is one of the world’s most climate-vulnerable countries but has coal powering about 57 percent of its electricity, up from 25 percent in 2005, despite a 2020 moratorium on new coal plants.
The country is grappling with the high cost of renewable energy (RE) and the slow pace of its development, prompting energy companies to delay their shift away from coal.
The moratorium allowed 2.6 gigawatts (GW) of ongoing projects to proceed, with 5.2 GW more in the pipeline as of 2025.
Carbon tax scrapped
Since replacing former Prime Minister Justin Trudeau in March Carney has repositioned his Liberal Party on the environment.
Immediately after taking office, Carney scrapped Trudeau’s unpopular carbon tax on individuals.
He then launched a Major Projects Office to fast-track initiatives he said would strengthen Canada’s economic sovereignty, creating a bulwark against the impacts of Trump’s tariffs.
Mining and natural gas projects — criticized by some environmental advocates — were among the early picks.
But the most dramatic development came on Thursday, when Carney struck a deal with the conservative-led energy-producing province of Alberta to advance a new oil pipeline while increasing overall oil and gas production.
“Canada and Alberta are striking a new partnership to build a stronger, more sustainable, and more independent Albertan and Canadian economy,” Carney said.
“We will make Canada an energy superpower, drive down our emissions and diversify our export markets.”
The deal marked a clear pivot for Carney’s Liberal Party and a departure from the policies that defined Trudeau’s decade in power.
Steven Guilbeault, a member of Carney’s cabinet, who was also Trudeau’s environment minister, agreed.
